Reykjavik, 2013-11-13 08:56 CET (GLOBE NEWSWIRE) -- Reykjavik Energy‘s Board of Directors has commissioned the CEO to prepare motions regarding the unbundling of RE‘s operations, as instructed by amendments to law 65/2003 that come to effect January 1st 2014. The motions are based on unanimous conclusions reached by the Company’s owners; The City of Reykjavik and the municipalities of Akranes and Borgarbyggd.
These entail that the current partnership of Reykjavik Energy (Orkuveita Reykjavikur) will be a holding company for subsidiaries, each of which will be responsible for its sector of operations; municipalities’ obligatory operations, licensed operations and competitive operations. The holding company’s type of entity remains the same, thus the unbundling does not affect its rights, obligations nor owners’ liabilities.
Changes to law governing Reykjavik Energy will be proposed in a bill prepared by the government of Iceland. The motion is, among other things, intended to ensure that the Company’s unbundling will not, by itself, confer taxing that otherwise would not fall on the Company. The unbundling will be presented in more detail when formal decisions have been made.